Notes to the Financial Statements For the financial year ended 31 December 2025 4. MATERIAL ACCOUNTING POLICY INFORMATION (continued) 4.13 Tax (continued) Current tax is the expected tax payable or receivable on the taxable income or loss for the year, measured using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. Current tax also includes any tax arising from dividends. Current tax assets and liabilities are offset only if certain criteria are met. Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for: • temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; • temporary differences related to investments in subsidiaries, associates and joint ventures to the extent that the Group is able to control the timing of the reversal of the temporary difference and it is probable that they will not reverse in the foreseeable future; and • taxable temporary differences arising from the initial recognition of goodwill. The measurement of deferred taxes reflects the tax consequences that would follow the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. For investment property that is measured at fair value, the carrying amount of the investment property is presumed to be recovered through sale, and the Group has not rebutted this presumption. Deferred tax assets and liabilities are offset only if certain criteria are met. Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on the reversal of relevant taxable temporary differences. If the amount of taxable temporary differences is insufficient to recognise a deferred tax asset in full, then future taxable profits, adjusted for reversals of existing temporary differences, are considered, based on the business plans for individual subsidiaries in the Group. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves. 4.14 Results from operating activities Results from operating activities is generated from the continuing principal revenue-producing activities of the Group as well as other income and expenses related to operating activities. Results from operating activities excludes net finance costs, share of results of equity-accounted investees and income taxes. 4. MATERIAL ACCOUNTING POLICY INFORMATION (continued) 4.15 New standards and interpretations not adopted The Group has not adopted the following revised accounting standards, that have been issued but are not yet effective, in the financial statements. The Group intends to apply these revised accounting standards, if applicable, when they become effective. Description Effective for annual periods beginning on or after Amendments to SFRS(I) 9 and SFRS(I) 7: Amendments to Classification and Measurement of Financial Instruments 1 January 2026 Amendments to SFRS(I) 9 and SFRS(I) 7: Contracts Referencing Nature-dependent Electricity 1 January 2026 Annual Improvements to SFRS(I)s – Volume 11 1 January 2026 SFRS(I) 19: Subsidiaries without Public Accountability: Disclosures 1 January 2027 SFRS(I) 18: Presentation and Disclosure in Financial Statements 1 January 2027 Amendments to SFRS(I) 10 and SFRS(I) 1-28: Sale or Contribution of Assets between an investor and its Associate or Joint Venture Date to be determined The Directors expect that the adoption of these new and amended standards will have no material impact on the financial statements in the year of initial application except for those described below: • In October 2024, the Accounting Standards Council (ASC) issued SFRS(I) 18, which replaces SFRS(I) 1-1: Presentation of Financial Statements. SFRS(I) 18 introduces new requirements for presentation within the statement of profit or loss, including specified totals and subtotals. Furthermore, entities are required to classify all income and expenses within the statement of profit or loss into one of five categories: operating, investing, financing, income taxes and discontinued operations, whereof the first three are new. • It also requires disclosure of newly defined management-defined performance measures, subtotals of income and expenses, and includes new requirements for aggregation and disaggregation of financial information based on the identified ‘roles’ of the primary financial statements (PFS) and the notes. • In addition, narrow-scope amendments have been made to SFRS(I) 1-7 Statement of Cash Flows, which include changing the starting point for determining cash flows from operations under the indirect method, from ‘profit or loss’ to ‘operating profit or loss’ and removing the optionality around classification of cash flows from dividends and interest. In addition, there are consequential amendments to several other standards. • SFRS(I) 18, and the amendments to the other standards, is effective for reporting periods beginning on or after 1 January 2027, but earlier application is permitted and must be disclosed. SFRS(I) 18 will apply retrospectively. • In October 2024, the ASC issued SFRS(I) 19, which allows eligible entities to elect to apply its reduced disclosure requirements while still applying the recognition, measurement and presentation requirements in other SFRS(I) s. To be eligible, at the end of the reporting period, an entity must be a subsidiary as defined in SFRS(I) 10, cannot have public accountability and must have a parent (ultimate or intermediate) that prepares consolidated financial statements, available for public use, which comply with SFRS(I)s or IFRS accounting standards. • SFRS(I) 19 will become effective for reporting periods beginning on or after 1 January 2027, with early application permitted. The Group is currently working to identify all impacts the amendments will have on the primary financial statements and notes to the financial statements. OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 193 192 PERENNIAL HOLDINGS PRIVATE LIMITED ANNUAL REPORT 2025
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